Business bills such as telephone expenses, internet, energy, and water bills take a significant portion of your revenue every month. If these bills are not checked, there is a likelihood that they will take a sizable chunk of your profits. Here are five steps you can take to lower the business bills effectively.
Do an audit of your monthly bills
Do a professional review of all the significant business bills. In the audit, check your bills for the last six or so months. Determine your consumption trend for each vote head. You may realize a sudden rise in energy bill or water bills or gradually rising costs over a given period. In such a case, determine the cause for the rise. For example, you may have rented more space thereby increasing your energy consumption or had a major water leak that pushed the water bills up. An audit gives you a clear picture of your bills so that you are able to act on each of them individually.
Put in place energy cost reduction measures
The energy bill could be going up due to several reasons. You could be using high energy bulbs, your equipment could be consuming a lot of power, the premises could be poorly insulated, or your energy provider could be overcharging you. Some of the cost reduction measures that you may take include:
Upgrading to energy efficient equipment
Gradually replace your old appliances with new, energy efficient models. These appliances include your printers, refrigerator, light fixtures, HVAC systems, and exhaust fans among others. Any systems that are about a decade old are already energy inefficient and should be replaced.
Compare energy providers prices
Energy comparison websites such as Energy Seek enable you to compare energy prices among different energy providers. It is good to determine if you are getting the lowest price per unit of energy consumed. If not, renegotiate your prices or move to a cheaper energy provider.
Review energy policies
Make it company policy for staff members to switch off computers, printers, and lights when leaving the office at the end of the day. Encourage staff to use heating and cooling equipment efficiently.
Work on your telephone and Internet bills
Some of the ways you can cut on your telephone and internet bills include engaging with your telecommunication providers to check if there are cheaper bundles you can pick. A bundled calling, messaging and internet service is way cheaper than paying for each service individually. If you have several branches across a given region, consider consolidating the bills to reduce the administration costs that comes with paying for your bills separately.
You can also take advantage of such technologies like Voice over IP service to cut phone bills when communicating with other branches or teams on site. You should also consider eliminating unnecessary long distance bundles and pay for what you consume rather than a fixed monthly payment. As for the internet service, go for the bandwidth that you effectively consume rather than a high bandwidth much of which is unutilized.
Deal with high water bills
Most businesses rarely check their water bills. However, a few measures could bring down water consumption and the monthly water bill. If you have a borehole at your premises, consider using as the main source of water for the business. It is a lot cheaper than mains supply.
You should also consider replacing old plumbing systems with energy efficient models. Start with the bathrooms and the kitchen. In addition, check the faucets and other water outlets such as the lawn water supply for leaks. Replace all leaking taps. Also, encourage staff members to turn off the taps when not using them. Alternatively, invest in bathroom faucets that automatically turn off after a few seconds.
Track your costs
After cutting down your business bills, ensure that you keep track of each of your bills on a monthly basis. This helps to fix the problems that may be causing an increase in the particular bill early enough. You can use software tools and financial systems to track the costs. Continue researching and implementing better cost reduction measures in each significant business cost center to bring down the bills.
Business bills are a significant part of your operating costs. Look for ways you can bring down the bills in a bid to cut down your operating costs. Make bill reduction measures an ongoing activity and implement new measures as they become available to the business. Jump to top